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These costs were related to the terminal dues that USPS (and other postal services around the world) charge each other in exchange for distributing parcels in t

by phlo 9y ago

These costs were related to the terminal dues that USPS (and other postal services around the world) charge each other in exchange for distributing parcels in their respective countries. [1] The system dates back to the 1960s and was implemented to ensure people could exchange letters internationally -- and the massive increase in small international parcels from e-commerce transactions is now overwhelming it. Things will change starting next year. The Universal Postal Union (UPU) has adopted a new revision of the terminal dues system [2] that classes bulky letters and small parcels differently from normal mail. [1] https://en.wikipedia.org/wiki/UPU https://en.wikipedia.org/wiki/UPU [2] http://news.upu.int/no_cache/nd/member-countries-adopt-new-terminal-dues-system/ http://news.upu.int/no_cache/nd/member-countries-adopt-new-t...

mistermann 9y ago
> Countries are currently classified by their level of development, meaning those in the most developed groups pay contributions into the Quality of Service Fund on top of terminal dues to those in the less developed group. This mark up goes toward development projects in the recipient country. Does this mean "less developed" China will end up being subsidized even more?
- phlo 9y ago
  The change to the regime for bulky letters and parcels is not the same as the group mergers. I was referring mostly to the former, which will increase the dues for bulky letters and small parcels to a higher per-kg-rate than the current rate that applies to all mail. The latter change merges some groups but will, to my understanding, not affect China. Groups 1.2 and 2 (countries which joined the terminal dues target system in 2010 and 2012, respectively) will get merged; as will the countries in groups 4 and 5, which are currently transition into the target system. China appears to remain in group 3. [1] [1] http://www.upu.int/uploads/tx_sbdownloader/listCountryClassificationEn.pdf http://www.upu.int/uploads/tx_sbdownloader/listCountryClassi...
  - mistermann 9y ago
    To keep it simple: will China finally have to pay more (because they are also shipping across the sea) to ship a package to middle America than an American at <wherever the port is where the Chinese goods are unloaded>? Or will it just be less of a subsidy.
    - phlo 9y ago
      No. China will have to pay more than today because a lot of their parcels will fall into the (now more expensive) bulky letter category. The US remains highly-developed, so you can expect terminal dues to remain cheaper than the retail rate. Finally, I suppose the Chinese government will continue to subsidize the transport from China to the unloading port in the US. In essence: When sending from China, you can expect to just about pay the terminal dues; the international transport is subsidized. You can expect this to stay true for as long as the US is significantly more developed than China.

by phlo 9y ago

mistermann 9y ago

> Countries are currently classified by their level of development, meaning those in the most developed groups pay contributions into the Quality of Service Fund on top of terminal dues to those in the less developed group. This mark up goes toward development projects in the recipient country. Does this mean "less developed" China will end up being subsidized even more?

phlo 9y ago
The change to the regime for bulky letters and parcels is not the same as the group mergers. I was referring mostly to the former, which will increase the dues for bulky letters and small parcels to a higher per-kg-rate than the current rate that applies to all mail. The latter change merges some groups but will, to my understanding, not affect China. Groups 1.2 and 2 (countries which joined the terminal dues target system in 2010 and 2012, respectively) will get merged; as will the countries in groups 4 and 5, which are currently transition into the target system. China appears to remain in group 3. [1] [1] http://www.upu.int/uploads/tx_sbdownloader/listCountryClassificationEn.pdf http://www.upu.int/uploads/tx_sbdownloader/listCountryClassi...
- mistermann 9y ago
  To keep it simple: will China finally have to pay more (because they are also shipping across the sea) to ship a package to middle America than an American at <wherever the port is where the Chinese goods are unloaded>? Or will it just be less of a subsidy.
  - phlo 9y ago
    No. China will have to pay more than today because a lot of their parcels will fall into the (now more expensive) bulky letter category. The US remains highly-developed, so you can expect terminal dues to remain cheaper than the retail rate. Finally, I suppose the Chinese government will continue to subsidize the transport from China to the unloading port in the US. In essence: When sending from China, you can expect to just about pay the terminal dues; the international transport is subsidized. You can expect this to stay true for as long as the US is significantly more developed than China.